HF 483 (LSB 2193YH (1) 86)

HOUSE FILE 483

BY  KELLEY

A BILL FOR

An Act providing that the exemption from property taxes for pollution-control property does not apply to property used as part of certain confinement feeding operations and including applicability provisions. 
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 427.1, subsection 19, paragraph e, subparagraph (1), Code 2015, is amended to read as follows:
   (1)  a.  For the purposes of this subsection, “pollution-control property” means personal property or improvements to real property, or any portion thereof, used primarily to control or abate pollution of any air or water of this state or used primarily to enhance the quality of any air or water of this state and “recycling property” means personal property or improvements to real property or any portion of the property, used primarily in the manufacturing process and resulting directly in the conversion of waste glass, waste plastic, wastepaper products, waste paperboard, or waste wood products into new raw materials or products composed primarily of recycled material. In the event such property shall also serve other purposes or uses of productive benefit to the owner of the property, only such portion of the assessed valuation thereof as may reasonably be calculated to be necessary for and devoted to the control or abatement of pollution, to the enhancement of the quality of the air or water of this state, or for recycling shall be exempt from taxation under this subsection.
   b.  Notwithstanding subparagraph division (a), “pollution-control property” does not include personal or real property used for purposes of maintaining animals as part of a confinement feeding operation under chapter 459. However, “pollution-control property” does include personal or real property used for purposes of maintaining livestock as part of a small animal feeding operation as defined in section 459.102.
    Sec. 2.  APPLICABILITY.  This Act applies to assessment years beginning on or after January 1, 2016.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   BILL. This bill makes changes relating to property that is exempt from property tax, specifically pollution-control property used to control or abate air or water pollution or alternatively to enhance air or water quality. The bill provides that pollution-control property does not include such property used for maintaining animals that are part of a confinement feeding operation, unless the property is used in a small animal feeding operation (Code section 459.102). The bill applies to assessment years beginning on or after January 1, 2016.
   TERMS. A confinement feeding operation is a totally roofed area used to maintain animals (cattle, swine, horses, sheep, chickens, turkeys, or fish) for at least 45 days. Animal unit capacity is determined by multiplying the maximum number of animals under each category of animal based on weight that may be confined at one time by a per animal equivalency factor then adding those sums together. A small animal feeding operation has an animal unit capacity of 500 or fewer animal units.